Dverberg, Vesterålen, Norway-based Andfjord Salmon is still not producing any revenue, but getting closer to that critical milestone, the company said in its second-quarter 2022 results.
Andfjord Salmon released its first smolts into its first flowthrough pool at its farm in Kvalnes, Andoya, Norway, over the summer, and since the end of June, the salmon have grown from an average weight of 120 grams to around 400 grams in mid-September. The company is targeting mid-2023 for its first harvest, according to Andfjord Salmon CEO Martin Rasmussen.
The company posted an operating loss of NOK 8.4 million (USD 817,000, EUR 815,000) in Q2 2022, compared to a loss of NOK 6.9 million (USD 672,000, EUR 670,000) in the same period in 2021. The change is mainly attributed to expenditure incurred as the company ramped up operations to prepare for release of the first smolts. The company’s total assets at the end of June 2022 were NOK 717.7 million (USD 70.8 million, EUR 69.6 million), and it expects its first operating revenues to follow its first harvest.
“It has been a fantastic first half of 2022 and my colleagues and I will do everything in our power to make the second half a success too. We are on track to build the world’s most fish-friendly and sustainable facility,” Rasmussen said. “We have succeeded in recreating salmon’s natural habitat on land without any artificial water-treatment processes. We are very pleased with the biological conditions in the pool, and believe that the high survival rate, currently at 99.4 percent, reflects this.”
Rasmussen said excavation of the next two pools to be developed at the Kvalnes farming site was completed in Q2 and further work is scheduled. The site has a target production volume of 19,000 metric tons (MT) head on, gutted (HOG) salmon.
Rasmussen praised the NOK 173.9 million (USD 17.1 million, EUR 16.9 million) invested into Andfjord Salmon by Jerónimo Martinsv, a Portugal-based international food industry group, for strengthening the company’s balance sheet.
Rasmussen also noted the benefits of a collaboration between Andfjord Salmon, Skretting Norway, and Zooca to produce a specially tailored salmon feed for the company using the zooplankton Calanus finmarchicus and algal oil.
Rasmussen said the company will further benefit from the Andøy municipal council’s decision to allow the company to develop another land-based fish farming facility at Breivik, Andøya, with a target production volume of 25,000 MT HOG salmon when fully built out.
Andfjord Salmon has ambitions to achieve a total annual production volume of around 90,000 MT HOG and has purchased or obtained purchase options on land sufficient to achieve that goal, according to Rasmussen.
Andfjord Salmon CFO Bjarne Martinsen said at the end of June 2022, the company held cash and deposits of NOK 191 million (USD 18.8 million, EUR 18.5 million), not including a NOK 5 million (USD 492,000, EUR 485,000) remaining loan facility, a NOK 20 million (USD 2 million, EUR 1.9 million) undrawn credit facility, and NOK 5 million (USD 492,000) in unpaid grants. The company secured a NOK 50 million (USD 4.9 million, EUR 4.8 million) bank loan in Q2 2022.
Photo courtesy of Andfjord Salmon
